Dec 29, 2019

what is marketing segmentation

what is Market Segmentation

What is Segmentation
Segmentation source- Freepik

this is one of the most important topics of marketing called market segmentation targeting and positioning.it is important to understand what is market segmentation
in this post, we will be discussing market segmentation with examples

When Any company or organization is coming in the market with the new product then they have to decide certain things and most important of them is segmentation targeting and positioning they have to think in which category their product belongs and what kind of people are interested in there product.

As the market has thousands of buyers and their preference vary with certain things like where they live, what they prefer, what is their culture, how much they earn, age, gender, lifestyle, personality, etc this is the things which very from person to person and if the company wants to come in the market with the new product then they need to understand this aspect of the customer at this point the market segmentation targeting and positioning play a crucial role lets learn one by one about each of the topic. after reading this you will understand the market segmentation importance, why is segmentation important, what is market segmentation and why is it important.

Market Segmentation

Segmentation means dividing the same product according to the different types of users and make subgroups of this product and then introduce the product according to the appropriate targeted audience. then these subgroups have there owned specialty like for higher-income people this part consist of premium products and for a lower-income family, the segment is made on affordable products.

the market segmentation is made with the help of the following points and they are further elaborated in detail so please keep reading.
  • Geographic
  • Demographic
  • Psychographic
  • Behavioral
Let's learn this points one by one and what they include will clear the picture of market segmentation

Geographic

Geographic market segmentation is done based on country, State, City Location. it is very important to understand the market according to these parameters.
for example American Express card Users
Country; worldwide (Users are all over the world)
State: All state (Users are present in all state we cannot categorize them according to that)
City: Metro city has more users of American Express card because of the people who live in metro city has more purchasing power than the non-metro city
Location: Rural area has fewer users of American Express card so that to maintain the appropriate number of users in that region company has to target urban people as they have more purchasing power they can spend more. then the company can target these users.
Geographic Segmentation plays a very crucial role in market segmentation hence the organization needs to maintain a proper plan for this.

Demographic market segmentation

this include demographic factors for the segmentation like age, gender, income, occupation generation. A company needs to understand that the product they are going to introduce is going to attract how old people like youngs ones or older ones. According to these parameters, the company has to understand the need of specific customer then they can improve customer loyalty by understanding the need of the customer also income plays very important role high income means a person is able to buy more or expensive items the according to that company can improve their products and which can help them to enhance the customer experience with that product.

let's take the example of American Express Card and divide it according to the demographic market segmentation.
AGE: American express card users are most often of age above 24 as the person who is earning is most likely to be the user of this card.

INCOME: Most of the users are from the upper social class sector as these people used to travel via airplane and this card can be used as the traveling card then this is the best target population according to demographic way if we are talking about income factor.

OCCUPATION: Most of the users of this card are celebrities, sportsmen, Professionals, politicians as they have higher purchasing power so that people who have this kind of profession will the target audience for the American Express card.

This is all about market segmentation on the basis of the demographic environment.


Psychographic  Market Segmentation

This segmentation is also very important its shows the company how their target customer is thinking and what are their preferences so that the company can understand the taste of the individual person and makes the changes and improvement in their product according to customer need.the following are the points which are included in the segmentation of psychographic environment.

LIFESTYLE: Company has to read the lifestyle of there customer lets take again the example of American Express card. People with a luxury lifestyle, businessmen, travelers, and explorers are our target customers in this category of market segmentation.

PERSONALITY: People who are comfortable with the online transaction will be my target customer also the users of the online transaction who are looking for the cashback attracts towards American Express card.


BEHAVIORAL Market Segmentation

Behavioral market segmentation talks about the user status, usage rate lets take the example once again of the American Express card and then talk about that.

USER STATUS:  Loyal users and regular online transaction users are a target audience.

USAGE RATE: light users and positive attitude towards credit cards are the target audience for American Express Card.






American express card Segmentation
American express card Segmentation part 1

American express card Segmentation part second
American Express cardSegmentation part 2


Market Targeting

Business Class people.§Frequent E-Commerce users preferred online transaction.§Frequent visitors at Premium Hotels like Taj Hotel§Frequent Travelers from Airlines.§Exclusive Restaurant visitors for premium Services§Luxury items buyers .§People Used to preferred Online transactions for Food, Commute, Purchasing, Entertainment.Eg. Swiggy, Uber, Amazon, Bookmyshow

American Express card Targeting
American Express card targeting


Thank you for reading if you want to say something about market segmentation please put a comment in the comment section thanks again.i will upload more posts like that where I will update the real-time scenarios and we will do the case study on that so make sure you are following my blog whenever I will write a new post you will get the notification for the same hope you are enjoying my blog so thank again and don't forget to mention the comment

Dec 27, 2019

how to make money on instagram

This post covers how to make money on Instagram, how to earn money from Instagram, how to earn from Instagram, how many Instagram followers to make money our topic for today is how to make money on Instagram.


how to make money on Instagram


You have chosen one of the best digital media platforms to earn money.
Social Media users
Number of users in Billion on the different social media platform


  • Facebook has 2.45 Billion Users
  • Instagram has 1 Billion Users
  • Youtube has 1.9 Billion Users
  • Twitter has 330 Million Users
  • Whatsaap has 300 Million Users
  • Snapchat has 170 Million Users


World Population is 7.5 Billion and if you look at the above stats you can say that 3.5 Billion almost half of the world is on social media platform. It is very important to use these free sources efficiently so that you can get maximum benefits from this platform and you can earn money. in this post, I am going to talk about how to make money on Instagram.




"I am an MBA student and just a month ago attended the world marketing congress where some of the top digital marketers from different countries give there valuable thoughts about the new strategies that can be used in the today's scenario to get maximum earning from digital marketing"

Instagram introduced as a photo-sharing app and in just a few years its become one of the most popular social media platform where a number of celebrities are active and doing Instagram Marketing. Now it's your time to make money on Instagram lets start now our topic how to make money on Instagram keep reading.

GOLDEN ADVICE - Organic Traffic is the Key to Success



1-Select your Niche (Topic) for Instagram

Selecting a niche is one of the most important topic to start the journey on Instagram. remember that once you chose your topic you cannot change that so choose wisely. for example if you have a furniture shop and you want to do digital marketing for that so that you need to post all the posts related to furniture.
example of topic 
  • Cloths branding
  • designer clothes
  • car modification
  • music 
  • learning
  • knowledge sharing
  • product marketing
  • event marketing
  • Tours and Travel marketing
  • Idea Screening
  • Problem Solver
  • Meme maker
  • Modeling
  • News
  • Motivation
  • Sports
  • Mobile
  • Watches
  • Review of products
  • makeup tutorials
  • photography 
  • Pets and Animal(for pets lovers)
  • Science and Technology
  • Space
  • Gaming
  • Food
  • Movies
  • Business Knowledge

this are some topics you need to choose one among them or come with your own idea but remember that you have to stick to that idea.

2- Creative Banners and Images 

Now many users are smart about the advertisement on Instagram many users try to promote their product in the old traditional way which creates a blind spot. This Blind spot allows users to neglect your advertisement which eventually just a lost of impression. If you create more creative posts which eventually attracts lost of people and you will get the organic traffic.

3-Approach Target Audience

The post should be according to the audience, for example, people from South Korea influenced by robotics if you are targeting that audience you should creative post which also reflects a bit of robotics. Englishman likes a metaphor.

4-Make engagement with your Audience

To make good engagement with your audience you need to make something which makes them engage with you like a quiz on anything but related to your niche, voting on the particular questions like yes or no type which helps to make engagement with your audience.


How to Earn Money from Instagram

  • Once you have sufficient followers you can ask for sponsorship which helps you to make money.
  • You can do affiliate on Instagram yes you heard it right you can earn through affiliation.
  • You can sell digital products like e-book, pdf, and notes with Instagram mojo (payment app) so that you can earn through digital products
  • You can offer paid services to people according to your niche.
  • You can open your own online store.
  • Become influencer and sponsored other products.
  • You can sell paintings, photos, and posters through Instagram.

you need to choose the frame for each post and font style accordingly so that viewers should feel the product that you are selling is genuine.







Dec 18, 2019

Determinants of Demand

Determinants of Demand

The following are the determinants of demand.


Price of the Commodity

According to the law of demand if the price increases then demand falls and price decreases then demand rise that means price and demand are inversely proportional to each other.as we all know that wants are unlimited when an income of person increases his expenditure capacity also increases which also increase the demand but its very essential to maintain the appropriate price of the commodity that the buyer should think that the price is kept accordingly. It happens because of income and substitution effects and its very important aspect in determinants of demand.

Eg: if the price of the 5$ pen is increased then there is a decrease in its demand because people tend to shift from this product as they have an alternative available.

The income of the Consumer

this is one of the aspects of determinants of demand. Demand is also influenced by the income of the consumer. In drawing the demand curve or the demand schedule for the good we take the income of the people as given and constant, When there is a rise in the income demand increases and then the whole demand curve is shifted towards the upward side. the greater income means the greater purchasing power therefore when the income of the people increases they afford to buy more due to that increase in the income have a positive impact on demand.  the consumer has more income he will buy more and if he has less income so he will obviously prefer less to buy. The high-income consumer has more purchasing power so that he can increase the demand that's why this is one of the important determinants of demand.

Eg.When because of drought in a year the agriculture production greatly falls due to the income of the farmers also declined. As a result of the decline in the income of the farmers, they will demand less Cotton and other manufactured product like electronics, vehicles and other essential products.

Taste and preference

Consumers' tastes and preference are also considered as important determinant of demand. A good for which consumers taste and preference is greater its demand would be large and its demand curve will lie at a higher level. the change in demand for various goods occur due to the change in fashion and also due to the pressure made by advertisers and marketing teams to motivate the customer to have a particular preference for there product. When certain goods go out of fashion then sometimes people's taste no longer remain favorable for them the demand for them decreases.  if consumers or end-user have more preference for any commodity then automatically his demand will increase and vice versa.

Eg. If a person likes chocolate and if the price of that product increases even then he think of buying that chocolate because of special preference.

Price of Similar goods

Similar or substitute goods are known as related goods. Price of such good is also considered an important determinant of demand. The demand for the product is also a motivated price of substitutes and complementary goods. When the demand for a product is full filed by alternative similar goods then these goods are called substitutes. when the price of substitutes or related goods changes then the demand curve changes its position it changes either upward or downward depending on the situation.

eg.when the price of the tea and the income of the people remain the same but the price of the coffee falls the consumer will demand less of the tea than before because Tea and coffee are a very close substitute for each other.

eg.If the price of the milk falls the demand for the sugar will considerably affected. If people take more milk then they will definitely consume more sugar so the demand for the sugar is also increased.

eg. Coca Cola and Pepsi if the price of one commodity is decreases then the demand for that commodity is increasing. 

Advertisement and Marketing

Taste and preference of the consumer can be changed by the use of appropriate marketing and sales strategies. Information about the product such as the availability of the product, advantages of the product over the competitor's product. this kind of strategy helps to increase the demand for the product so that this is also one of the important determinants of demand. Advertisement is given in various medias such as newspapers, social media, tweeter, radio, TV, etc. Advertisement used to influence people about the particular product or service of they can convince the buyer with the help of marketing then there is an increase in the demand of that particular product so that it is also one of the important determinants of demand.

Consumer Expectation

Consumer expectation is considered to be an important determinant of demand. If the consumer expects a hike in prices he may prefer to buy more quantity of that particular commodity and vice versa.
Similarly, the Expectation of rising income may force him to increase his current consumption.

Eg.if government announces that from tomorrow the price of XYZ commodity is increasing then people tend to buy XYZ commodity in advance.


The number of Consumer in Market

The greater the number of a consumer of goods the greater the market demand for it.the factors on which number of consumers depend if consumer substitute one good for another, then the number of consumer for the good which has been substituted by other will decline and for the goods which have been used in the place of others, the number of consumers will increase. when the seller is able to find the new market for his product than the consumer for that product increases. Growth of population is an important determinant of demand. If the population increases the demand for the commodities also increases as the number of buyers are increasing.

eg. India and China have the highest population among the other nations due to that the Xiaomi mobile brand has maximum users of there phone hence demand will be affected by the population.

Weather Condition

Weather condition also affect the demand as in summer season demand for the cooler, AC's, Fridge and cold drinks increases similarly in the rainy season the demand for raincoat, umbrella increases so weather or climate condition plays a crucial role in the determinants of demand.

Tax rate

Demand is also affected by the tax rate if the government increases the direct tax on a particular product it is found that there is a decrease in its demand. so that the companies try to reduce the tax on their product by implementing their plants in the countries where tax rates are low so its a very important determinant of demand. 

Availability of Credit

One of the most considerable determinants of demand is credit availability the purchasing power of the consumer is highly affected by the credit availability is their availability of cheap credit the buyer tends to buy more quantity of product.

If you have any question or you need an answer for any query you can comment in the comment box and I will try to answer all the question if you like my post please do the valuable reaction it helps me to do more work and motivates me to write more posts thank you.


Demand 

The demand for the commodity is consumers' desire to have it for which he is willing and able to pay the money.in economics demand considered as the desire and purchasing power of the person who wants to buy something if he can pay for that then this is considered as the demand.


Law of Demand

Law of demand state that when there is an increase in the price of commodity then there is a decrease in the demand and vice versa





Dec 12, 2019

Utility in economics | What is demand in economics

Utility meaning 

The utility means the amount of satisfaction an individual get for consuming a commodity. it is also defined as want satisfying power of commodity. The utility of goods is important determinant of the consumer for the good. It is assumed that the individual tries to maximize his utility or satisfaction from the goods he buys for consumption. Consumer demand for consumer goods for their own satisfaction is called direct demand. Utility is the subjective entity and resides in the mind of men being subjective it varies from person to person .different person derive the different amount of utility from the given good. The desire for the commodity by a person depends upon the utility he expects. the greater the utility he expects from a commodity the greater he desires for that commodity. Alcohol and smoking may actually harm persons but it possesses utility for those whose want they satisfy.

The Definition of Total Utility
If utility in economics is cardinal and measurable, the total utility is defined as the sum of the satisfaction that a person can receive from the consumption of all units of a specific product or service. Using the example above, if a person can only consume three rotis and the first roti consumed yields ten utils, the second roti consumed yields eight utils, and the third roti yields two utils, the total utility of rotis would be twenty utils.


The Definition of Marginal Utility
Marginal Utility is defined as the additional utility gained from the consumption of one an additional unit of a good or service or the additional use that a person has for an additional unit. let us use the same example if the economic utility of the first roti is ten utils and the utility of the second roti is eight utils, the MU of eating the second roti is eight utils. If the utility of a third roti is two utils, the MU of eating that third roti is two utils.

What is Demand in Economics

The demand for the commodity is consumers' desire to have it for which he is willing and able to pay. The Demand for the commodity is the amount of it that a consumer will purchase it at various given prices during a period of time. This time period may be day, week, month or year. The demand in economics implies both the desire to purchase and the ability to pay for the good. For example in a poor person who wants a car but he is unable to pay the amount required for the car then this will not be considered as the demand for the car as the demand is always deal with purchasing power.
Thus in economics, unless demand is backed by purchasing power or ability to pay it does not considered as the demand. Demand for the commodity is determined by the several factors such as price of a commodity, taste, and desire of the consumer for the commodity, income of the consumer, price of related or similar goods. When there is a change in any of these factors then there is a change in demand. 

Types of Demand

Consumer’s goods and Producers goods Demand
Consumer’s goods are goods used for final consumption e.g. food items, readymade clothes it is also known as direct demand. Demand for producer’s goods is derived demand, for these goods are demanded not for final consumption but for the production of other goods. E.g. steel is used for kitchens utensils, Consumer’s demand depends upon consumer income, producer’s goods demand depend upon demand of the final product.


Perishable and Durable goods Demand

Both consumer’s and producer’s goods are further divided into perishable goods and durable goods. Perishable goods are those, which can be consumed only once, while durable goods are those goods, which can be used more than once over a period. Bread, milk is perishable. Car, fridge is durable. Perishable goods demand is current demand depends on market conditions. Durable goods demands depend on replacement of old product and expansion of total stocks.


Derived and Autonomous Demands

When the demand for a product is tied to the purchase of some parent product, its demand is called derived. E.g., cement for the house. Autonomous is independent but such type good hard to find. All goods depend on other goods and degree of dependence varies e.g. battery tightly tied up with car sugar loosely with soft drinks. Thus, a distinction is more of a degree than of a kind.
Company and Industry Demands Company demands denote the demand for the products of a particular company while industry demand means the demand for the product of a particular industry .e.g. TISCO demand for steel is a company demand while all companies accumulated demand is known as industry demand. The important market structures are distinguished based on product differentiation and the number of sellers

Dec 1, 2019

What is Business Analytics

What is Business Analytics

This post includes the following topics.
  1. What is Business Analytics
  2. What is the Role of Business Analytics 
  3. How to Become a Business Analyst
  4. Tools required to become a Business Analyst
  5. Business Analytics Salary

What is Business Analytics
Business Analytics source- Freepik

Analytics have been introduced in the late 90s this is the time when numerous management exercises are practiced, MR Henry Ford used Analytics to understand the time taken by each component in his assembly line. But analytics become famous in the 1960s because of the introduction of computers and many organizations uses the ERP(Enterprise Resource Planning) system, data warehousing software, and other tools. 
What is Business analytics
What is Business Analytics

Now, this is the time when Business Analytics comes into the picture. The introduction of computers takes Analytics on a whole new level and has brought about endless possibilities.
"Warm Welcome to All of You, the objective of writing this blog is to make you understand All about data science as Business Analytics (BA) an integral part of Data Science"


all the concept here in this blog are written not in heavy textbook type manner, my intention is that you should enjoy when you learn.

1)What is Business Analytics

It is a process of Collecting, Sorting, Analyzing the Organization's quantitative data for better decision making. the objective of the Business Analyst is to understand the depth of data and use it accordingly for the improvement in efficiency, productivity, profit, sells and problem-solving. Business Analytics focuses on developing new insights and understanding of business performance based on data and statistics.

Business Analytics have to answers questions like,
  • Why is this happening?
  • What if these trends continue?
  • What will happen in the future (predictions)?
  • What should be the outcome after using different tricks and techniques?

"in simple language business analyst's goal is to collect the raw data and convert it into useful data and analyze it and take appropriate business decisions."


2) What is the Role of Business Analyst

Lets now understand the Business analyst role in a very simple way,

Assume you have a company which makes mobile phones, You want to understand the future requirements of the customers for your mobile brand? what could be your next move? Which technology will come in the trend? etc.

So, the role of the Business analyst in that company is to gather the raw data from various resources so in which form data can be available? To answer this question we have various answers,

  • Youtube video reviews from YouTubers and comments in those videos will give you the feedback.
  • Social media gives you the number of images and videos which can help you to understand people's preference.
  • Data can be anything image, video, audio, infographics, tables, etc.
As a Business analyst, you have to gather this raw data and convert it into useful insight and by doing this you have to create a model that can help your company to predict the estimated sales results.

You have to perform tasks like
  1. Creating a dashboards
  2. Preliminary data Reports
  3. Reporting with Visuals
  4. Sales forecasting
  5. Data mining
  6. Data gathering from a client
And to performs these tasks, Busines analyst has to use a certain number of tools that are covered in point number 4 of this post.




3) How to Become a Business Analyst or Analytics

To become a business analyst you can opt for a graduate degree in data science, post-graduation in MBA as a specialization in Business Analytics, you can also pursue these courses online from 365 data science which is the best platform according to me right now for starting.

For Experience in IT, it's easy to become a Business Analyst. Most of the MNC's preferred Business analysts with prior experience in the relevant filed.

For a software developer, it is easy to become a Business Analyst in the same company with a sound knowledge of programming and software testing.

4)Tools Required to become BA

Tableau

This is the data visualization tool required in the BA filed, By using this tool you can create an amazing dashboard that helps the non-technical person to understand the insights of data.

If you are a student you can download the Tableau desktop for a year free of cost.

Tableau Dashboard
Tableau dashboard
As you can see from the above image the data shows the population birth Rate 2012 in a very useful Graphical dashboard this is the power of Tableau, Tableau can convert tables into Visuals


 "Tableau can convert tables into Visuals so that everyone can easily understand the insight of the data"


SQL or MySQL


SQL and MySQL are the databases,  it is a must for any BA to know about the DataBase to store the data, manipulate data, scattered the data from the database.

Remember, the database might contain huge data which is termed as Big Data, to efficiently handle that data which consist of millions of row and characters the BA must know how to use Database.


Python Programming language

This is the most popular language for statistical analysis of data hence this is MUST known language for BA, Python has tremendous ability and its on of the easiest programming language to learn we can use python along with SQL and Tableau.

This is also one of the most important Tool for Business Analysts.

Other Tools for Business Analyst are,
  • R Programming Language
  • Microsoft Excel
  • Deep learning
  • Artificial intelligence
  • Machine learning

5) What is Business Analytics Salary

As per the Google trends, you can see the graph of Business Analytics for the past 5 year data of worldwide is going upward, which gives us a clue about the popularity of this topic. this topic is most popular in USA, CA, UK and INDIA.
Google trends Graph for Business Analytics
Google Trend report

Now lets Discuss About the Salary of Business Analyst or Business Analytics Graduate in different countries and geographical regions
  • INDIA - Average is 6.5 Lakhs Rupees
  • The USA  - Average is $78,734  Dollars
  • CAN- Average is $97,795 Canadian Dollars

Nov 28, 2019

TVS BMW JOINT VENTURE CASE STUDY


TVS BMW TIE UP FOR 500CC SEGMENT

BMW Motorrad is the motorcycle brand of the German company BMW. They produced motorcycles since 1923 BMW known for there super bikes range from 310cc to 1649cc this german brand wants to put there feet in the Indian market for that they have to tie up with TVS motors TVS is the multinational motorcycle company headquartered is in Chennai INDIA it is the 3rd largest company in INDIA and 2nd largest exporter TVS has 3 million annual sales TVS exports over 60 countries the objective of this JV is to manufactured the bikes range from 200-500 cc which is known as  the sub-segment of 500 cc premium bikes range presently BMW has 19 different sports bike and scooters with very high range from 600-1600 CC capacity. this joint venture helps BMW introduce themselves in the INDIAN market with 300 cc category vehicles.

"This tie-up gives us the ability to produce motorcycles above 250cc which we do not make today," says VenuShrinivasan chairman and MD at TVS motors.we are adopting the technology that BMW has such as Quality, Durability, Reliability, Engine performance, Emission standards, and high-end technological manufacturing process.

BMW will get the benefits in terms of cost reduction for the production as they can utilize TVS motors plant equipment and machinery so the production cost will be kept low.


Problems and Issues

TVS control just over 7.7% market share in the motorcycle segment and they do not have any bike 200cc. The market above 200 cc segment is dominated by Royal Enfiled, Bajaj Auto LTD with 81.1% and 14.7% respectively also new entrants like Benelli, Indian, MV Agusta, Indian now has 11 premium bikes makers so competition in this segment is very high to enter in this segment TVS need a very strong partner so that they choose BMW as there partner for the 500cc segment.
There are several problem faced by BMW. India is one of the most rapidly growing economies in the world so that INDIA is one of the most important markets for BMW. Though the Indian luxury motorcycle market is still at nascent stage BMW facing a problem INDIA about there supply chain according to ShriNivasan TVS motors ability to develop small products in mass scale with the right quality and good production engineering and with a robust supply chain ware the reason for BMW choosing it as its partner.BMW is not known for there mass production so they found TVS motors company an experienced partner who can offer high-quality engineering and competence in mass manufacturing.
BMW was facing a problem where they have to pay higher production and export costs as TVS is over 60 countries with well manage supply chain system BMW can utilize that resources too.


Geographical Scenario

In the context of changing motorcycle markets demographic trends and increasing environmental demands BMW Motorrad will expand its product offering even further we are currently in the process of realigning our motorcycle business in order to maintain profitable and sustainable growth over the coming year one focus will be on urban mobility and e mobility another logical next step is the entry into segment below 500 ccs thereby tapping into sales potential in the emerging market of Asia and South America , where motorcycles with smaller capacity are especially in demand ,

therefore BMW Motorrad and TVS motors have signed long term corporation agreement in future we will be able to offer the vehicle in smaller capacity classes in addition to the BMW Motorrad core segment from 650 to 1600cc .BMW says INDIA is a very interesting future market for BMW Motorrad this is due to the fact that it features a fast-growing group of buyers interested in buying premium products.

the countervailing force model deals with the first business is deeply integrated into an open society and must respond to many forces both economic and noneconomic second business is a major force acting on government the public and environment factors and third is to maintain broad public support business must adjust to social politics and economic forces it can influence but not control.

Made in India 310R will be manufactured here in INDIA at the TVS motors Bangalore plant and India will  become the export hub for rest of the world this would also means that pricing in India is very tough while it will be manufactured in INDIA the entire design and development of motorcycles is been completed in Germany this is great example of Globalization

Nov 9, 2019

Michigan Leadership studies

What are the Michigan Leadership studies




Michigan leadership studies are the series of leadership studies that take place at the University of Michigan in the year of 1950s. this studies are carried out to understand the perfect method to enhance the productivity of an organization by providing an appropriate job environment for the satisfaction of workers and the best-suited style of leadership to enhance productivity.



michigan leadership studies flow chart
Michigan Leadership Studies


this studies have two broader types of leadership styles (employee and production orientation)and these studies also classified three important characteristics of effective leaders Relationship oriented participative leadership and task-oriented behavior.

1)An Employee Orientation 

In this type of leadership style, the leader did not supervise very closely or directly which makes worker feel free and perform their tasks efficiently because of that the productivity increases.

  • interpersonal relations, taking a personal interest in the needs of employees. 
  • Treat subordinates politely.
  • encourage and motivate the employees.
  • Allow employees to participate in decision making.


2)Product Orientation 

production orientation focuses on the technical aspects of employment and workers are focused on completing the production work.

  • Tough and rigid working standards and strict rules to be followed by employees.
  • very close supervision of subordinates.
  • employees are considered as a tool to do the work anyhow and forced them to complete the work.

Conclusion

this two styles are responsible for improvement in productivity but if we talked about product orientation strategy which leads to increase in productivity but a reduction in job satisfaction.on the other hand, if we talked about the employee orientation here the productivity increases and absenteeism is decreased which is very helpful for an organization.

All about Michigan Leadership studies

  • Michigan leadership studies failed to justify the effect of leader behavior.
  • Michigan Leadership Studies failed to understand the complexity of the task hence its unable to say what characteristics job or task posses
  • These studies tell about employee-oriented and product-oriented but in real life according to situation people might get success in one technique and failed in another.
  • In real life, the leader might adopt one style or other at a different place when they feel which style best suits the situation its depend on them.
  • Managers should share ideas with subordinates and understand there point of view which can help to understand the perception of the employees.
  • the manager should be very descriptive when he was assigning a task to subordinates.







Oct 31, 2019

AI For Setting Sales Target

USING ARTIFICIAL INTELLIGENCE (AI) TO SET SALES TARGETS

this topic is raised at HARVARD BUSINESS SCHOOL  at 22nd October 2019 by Michael Blanding

Setting an appropriate sales target is a very difficult task and it must be done properly to avoid any negative consequences for an organization in the long term.

Setting the target too low makes it easily achievable which limits the ability of an employee to perform his or her best.

similarly,

If the target is very high then it become really difficult to achieved. Professor at HBS said that if the target is very high then the salesperson will be discouraged and unable to perform at his full potential.

Heres the role of Artificial Intelligence comes into the picture to find that sweet spot to set the sales target accordingly, Mr. Chung professor at Harvard business school found that there is a dramatically improved productivity in companies once they adopt the advanced analytical methods.

"in real life, scenarios companies try so many trial and error methods to find the best method for sales targeting"

To improve the productivity companies has to give compensation to the employees and to find the best-suited compensation they have to experiment until they get the best method.

PAST PERFORMANCE DATA IS USED FOR SETTING SALES TARGET FOR UPCOMING YEAR


Most of the companies set the sales target higher than the previous year which could have its own drawbacks.

"suppose Mr.A is an employee at XYZ company he has given a sales target of 100 products in 2019 he worked hard and achieved his target but he can sell 120 products if he wants to in the same year but he stops himself at the target which is given to him and in next year company might giving him a target of 120 products ,So the company is not utilizing the full potential of Mr.A and this is the real problem faced by any organization"

PUTTING ARTIFICIAL INTELLIGENCE TO WORK


AI uses various algorithms and computing analysis to set the appropriate target as per the ability of an individual salesperson AI went through various variables and set the target accordingly.
As an MBA student, I would like to recommend that companies should understand the interests of there employees like what kind of news they used to read what are their area of interest and ability to take challenges are high in which area what should be the compensation for an individual and set target accordingly which makes an employee to feel more important and makes him to do his work efficiently.


COMPANIES NEED TO TARGET GOALS LIKE

  • By what percent they have to increase the revenue.
  • Is the customers are delighted or satisfied.
  • Do Swot Analysis www.digitalzak.com you can refer the above site to understand the basics of swot analysis.
  • Educate and empower your sales team and motivates them to work hard.
  • Understand the segment properly and do some research on STP.

HOW CAN AI HELP TO ACHIEVED THIS GOALS


once the data is feed into the AI system it processes it and generates the goal for an individual person the more data we give to it the more accurate result we will get from the AI. Variables that companies can use are employee data,
such as average and previous years sales it is necessary to observe the growth of competing companies or countries.  there is so much data we can use such as average temperature you may think it has no relation with sales but if the temperature is high then salesperson can not go to the field and do his work.



COMPANIES CAN COLLECT DATA GLOBALLY FOR FEEDING IT INTO AI


Companies can assign computing analysis works to small firms or consulting agencies to develop AI-based data algorithms for the organization to target the objective of increasing the productivity.

there are some firms used the AI for the following purposes.
  • banking and finance
  • security
  • smart email categorization
  • customer segmentation
  • smart device adjust accordingly to customer behavior


FROM RESISTANCE TO PRODUCTIVITY


Such systems to create the most accurate measures, and management's confidence which helps foster buy-in by sales employees.

A company can use an AI system to improved the productivity its a one-time investment which can help the organization to assign the appropriate sales target which eventually helps an organizations and employees also

if you do like above article please write a comment below


reference is from www.hbs.com

Oct 25, 2019

WHAT IS SWOT ANALYSIS?

SWOT Analysis (Explanation of Weakness, Strength, Opportunity and Threats)

Companies' objective is to improve the sales and profit of the organization. To improve that companies have to evaluate each and every aspect of the performance and overall evaluation of the company's strengths, weaknesses, opportunities, and threats are called SWOT Analysis.
In simple language it is the way of observing external and internal marketing environment 
Albert Humphrey was a management consultant at Stanford Research Institute in 1960-1970 he comes up with a method of planning which was named as Swot Analysis.


EXTERNAL ENVIRONMENT ANALYSIS (OPPORTUNITY AND THREAT)


A company must observe the macroenvironmental forces(Demographic, Economic, Political, Ecological, Technological, Socio-cultural) and microenvironmental factors(Customers, Suppliers, Competitors, Shareholders, Employees, and Media) that affect its ability to earn the profit.

A company must assign some intelligence team which will observe the trends, important development requirements, and related threats and opportunities.




OPPORTUNITY

As per the Need of Buyers and Intrest company has higher chances of making a profit that is called opportunity there are three sources of marketing opportunity.


  • Offer something which is in shorter supply. (eg. Xiaomi's flash sale)
  • Supply the same product or service in a new way. (eg. Suzuki Nexa)
  • Introduce the new product or service. (eg. Amazon prime)


Marketing managers must be very good at spotting opportunities and to evaluate the opportunities present in the company managers can use the method called as market opportunity analysis(MOA) to ask questions like this:
  • Can we locate the targeted market(s) and reach that with minimum investment?
  • Do we have all the resources to benefits the customer?
  • Can we deliver benefits better than competitors?
  • How is return on investment(ROI)?


THREATS


The threat is an unexpected change in the demand of the customers and a change of trends that would lead to lower sales and profit. An organization must practice some exercise to adapt to the changes in demand and wants of the customers.


INTERNAL ENVIRONMENTAL ANALYSIS(STRENGTHS AND WEAKNESSES)


Business need to evaluate its strengths and weaknesses on a regular basis where weaknesses are the opportunities to improve and strengths are to take advantage of that ability.

You can understand better with these examples.
  • Dell strength was selling its hardware efficiently and effectively to its customers better than its competitors like IBM and Compaq.
  • Dell weakness was its brand was not that strong and it didn't have strong relationships with the dealers.
  • Dell opportunity is they provided assembling facilities to customers once they understand the market is becoming more sophisticated.
  • Dell threat is it failed to generate a strong customer base.



CONCLUSION


Bussiness can Evaluate its own strength and weaknesses and it's not necessary to correct the weaknesses nor be overconfident on its strength.

the big question is that, what should they do then?
answer for that is, An organization must consider all the aspects and do analysis like SWOT analysis and try to make new strengths along with a reduction in the number of weaknesses they have.

That's the reason this kind of Strategies is been taught in Marketing, MBA and Bussiness studies which help the managers to found the critical points in a company to overcome and perform better. 

Thanks for reading and mention one learning from the above article in the comment section.











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